02/05/2012 (Business Mirror) - A Filipino company plans to start a palm-oil plantation in Zamboanga del Norte for the production of palm oil and dried palm kernel.

The project is expected to reduce the country’s dependence on imported palm oil and palm kernel by-products.

Zanorte Palm Rubber Plantation’s proposed project, with a budget of P737 million, was recently granted tax incentive by the Board of Investment (BOI).

Undersecretary and BOI Managing Head Adrian S. Cristobal Jr. said the project will be a boost to the country’s agro industry, particularly palm oil, identified by the BOI as an investment priority.

“The Zanorte project will help expand the country’s agro-industries and create much-needed employment opportunities in rural areas. It will also help boost the palm-oil industry which is among the sectors we have identified for industry development,” he said.

The project will be located in the towns of Sirawai and Sibuco in Zamboanga del Norte, one of the poorest provinces in the country.

Once operational, the project is expected to generate 1,055 jobs.

The proposed plantation’s total production capacity is pegged at 9,900 metric tons (MT) of palm oil, and 2,338 MT of dried palm kernel.

Palm oil and dried palm kernel are sold to food giants like Universal Robina Corp., RFM Corp., Nestlé  Philippines, and Mina Oil Mill Corp., as well as manufacturers and exporters of soap and other industrial products.

“While agriculture was hard hit by El Niño, La Niña and other natural calamities, the sustained investor interest in agribusiness will re-energize and help us further grow this sector,” Cristobal said.

BOI data showed that agriculture investments in the first quarter grew by 52.77 percent, amounting to P479.682 million in 2012 compared to P313.988 million.

The Philippines is a net importer of palm oil and palm kernels.

Latest data showed that the country’s annual production capacity for palm oil is 54,333 MT, while that of palm kernel is 6.54 MT.

Each palm fruit is capable of producing 90 percent palm oil and 10 percent palm kernel oil.

Industry data show that palm oil currently accounts for a 21-percent share of the global edible oil market.

Zanorte has also registered a rubber plantation project with the BOI early this year.

The project will develop rubber plantations integrated with processing to produce dried rubber.

The firm will sell the products in bulk quantity and in various grades to local firms that use rubber as basic material to manufacture final end-products such as tires and shoes. Initial target buyers are Dunlop, Bridgestone and Yokohama